Final answer:
The student is mistaken; IFRS is principles-based and encourages professional judgment, while US GAAP is rules-based with detailed specific guidelines.
Step-by-step explanation:
Actually, it appears there has been some confusion with the concepts here. In fact, International Financial Reporting Standards (IFRS) are considered to be principles-based standards, whereas Generally Accepted Accounting Principles (GAAP), specifically the United States GAAP, are known for being more rules-based and detailed. The IFRS framework is designed to apply broadly across many situations, providing guidance that can be interpreted in the context of each transaction. This principles-based approach of IFRS encourages professional judgment in its application. On the other hand, US GAAP provides more specific rules for accounting transactions which can result in a more complex and detailed set of standards. Both have their own advantages and challenges, with IFRS focusing on the substance of transactions and US GAAP providing detailed regulations to ensure consistency and comparability across organizations.